Onexim will sell a 25 per cent plus one share interest in platinum and nickel giant Norilsk Nickel to UC Rusal, under the terms of an agreement between the two firms.

The deal will also see Onexim acquire an 11 per cent stake in aluminium and alumina producer UC Rusal, with the balance of the consideration to be paid in cash.

The offer is conditional upon Onexim rejecting a previously tabled bid from Norilsk figurehead Vladimir Potanin and, pending regulatory approval, is expected to be completed by the first quarter of 2008.

Dmitry Razumov, Chief Executive of Onexim, said: "The potential combination of UC Rusal and Norilsk Nickel into a Russian metals and mining giant, with leading positions in global aluminium, nickel and platinum group metals markets, with significant long-term growth perspective, will provide superior value to both companies' shareholders.

"This breakthrough transaction in the Russian metals and mining industry is also consistent with Onexim's strategy to achieve high growth and high return of its investments."

News of the agreement comes as Expert-Siberia magazine this week named Norilsk as Siberia's most profitable company last year, with a return of $4,846 million.

Source:

UC RUSAL and ONEXIM Group Aim to Create Russian Diversified Global Mining Leader, 27/11/07
http://www.russianewswire.com/releases_headlines_details.php?id=11533

Norilsk Nickel named Siberia's most profitable company, 26/11/07
http://english.newslab.ru/news/241359

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